What to make of OMC debts as an outsider

WalkerJohny123

New Member
Messages
1
Hello all. I've been lurking for a while and learning a ton about OMCs. I'm hoping you share your insights.

We are considering buying a 2nd hand house in a large development in South Dublin City. (I'd rather not name it publicly.) We tried to buy elsewhere before, also on a large development, but it didn't work out. We pulled out from the sale under the advise of our solicitor, who discovered an OMC in pretty poor state (incredibly large debts, plus other issues). I had no idea about this stuff back then so this time around I want to do some more homework before sinking a couple of months on this.

Through the state agent I've got the name of the OMC, so I've went into the CRO website and purchased pdfs for a few of their key submissions. I now know they declared in their last financial statement a 5-digit figure on management fee arrears (close enough to 6 digits...) . We're trying to get an idea on whether this a large/concerning figure. I realise one cannot take this figure at face value in isolation and that it maybe very relative, so here's more context:
- The development is a mix of apartments and houses, with majority of the later.
- The "area" is quite large, but I don't know that it is all a single OMC. I know that has been built over a large period of time and by several developer companies. (Actually, this area would be one of many examples of developments that stopped right at the end of the Celtic Tiger days and the developer went into receivership.) Would it be fair to assume that different developers would've set up different OMCs? Is it possible for me to find out exactly which houses/streets belong to the corresponding OMC from the planning permission?
- The OMC directors all live in the area, presumably buyer-owners and opposed to the actual developers or their families. I understand this is a good sign.
- From the list of submissions in CRO they have been up to date on financial statements, rotating directors, etc. for some time.
- The development looked taken care of, i.e. clean, no rubbish, decent shared green/playground areas, etc.

Knowing the above what would you make about this OMC and the figure of debts? What might be other info that might give me a better indication?

And if I may abuse your help... what's a good source for me to learn how to "read" the financial statement balance sheet. Right not I'm at a loss on what I'm reading there.

Thanks in advance!
 

jpd

Frequent Poster
Messages
1,941
you could look at www.accountingcoach.com to get some insight into accounts

What are there annual income and outgoings?
How much is owed?
How much do the hold in bank accounts, etc?
 

NoRegretsCoyote

Frequent Poster
Messages
1,412
"5-digit figure" divided by "quite large" could be anything.

I know you're being coy on purpose, but you'd get a more useful answer if you gave an estimate of average arrears per unit.
 
Top